Required: Prepare year-end journal entries for income tax for 2020 to 2024. Assume that ITA Beverages follows IFRS, and has a year end of May 31. Any loss carryforward benefits are judged more likely than not to be realized in future years.
Loss Carryovers(please do this question properly with explanation, I posted this 4 times previously. All times the answer was copied from chegg)
|
ITA Beverages Inc. has a policy of carrying back tax losses before carrying any remaining amounts forward. ITA Beverages reported the following pre-tax accounting incomes (losses) for a period of 6 years: |
||
|
|
Accounting |
|
|
Year |
Income (Loss) |
Tax Rate |
|
2019 |
$ - |
26% |
|
2020 |
$ 126,990 |
26% |
|
2021 |
$ 56,440 |
26% |
|
2022 |
$ (201,572) |
27% |
|
2023 |
$ 156,480 |
27% |
|
2024 |
$ (413,549) |
27% |
Note that income (loss) for tax purposes is the same as accounting income (loss) for all years. The income tax rate is not expected to change following the 2024 year.
|
Required: |
|
Prepare year-end IFRS, and has a year end of May 31. Any loss carryforward benefits are judged more likely than not to be realized in future years. |
Step by step
Solved in 2 steps with 2 images
